Financial Literacy Among Gen Z: Understanding The Gaps And Opportunities
Keywords:
Financial literacy, Generation Z, behaviors, digitalized economyAbstract
Financial literacy has become increasingly crucial in the modern world, particularly among younger generations, as they navigate the complexities of a globalized, digitalized economy. Generation Z (Gen Z), those born roughly between 1997 and 2012, are growing up in an era where financial decisions are increasingly influenced by digital platforms and access to financial tools. Despite the pervasive availability of financial information, studies indicate that many Gen Z individuals demonstrate limited financial literacy, which can impact their economic stability in adulthood. This study explores the level of financial literacy among Gen Z, identifying the factors that contribute to financial knowledge and the barriers to improving financial literacy. A mixed-methods approach was employed, combining both quantitative surveys and qualitative interviews to assess financial literacy levels and the sources of financial information utilized by Gen Z. The findings reveal a significant gap in understanding key financial concepts such as budgeting, saving, and investing, and highlight the influence of digital platforms and social media in shaping financial behaviors. The study also discusses the role of education, family background, and social factors in shaping financial literacy among this cohort. Based on these findings, the paper offers recommendations for improving financial literacy programs targeted at Gen Z, emphasizing the need for both formal education and digital platforms.Downloads
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References
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Robinson, T., & Buck, J. (2018). Financial literacy and behaviors of young adults in the United States. Journal of Personal Finance, 17(4), 23-36.
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Tsai, T., & Huang, Y. (2019). The impact of social media on the financial behavior of young adults. Journal of Behavioral Finance, 20(3), 225-235.
Williams, T., & Harris, A. (2020). Social media as a source of financial education for young people. Journal of Financial Education, 22(4), 112-124.
Young, M., & Brodie, R. (2015). Digital financial literacy: A guide for the next generation. Journal of Digital Media and Policy, 6(3), 345-367. https://doi.org/10.1386/jdmp.6.3.345_1
Zick, K., & Glendinning, D. (2021). The intersection of social media and financial literacy among Generation Z. International Journal of Financial Literacy, 27(4), 89-98.
Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15, OECD Publishing. https://doi.org/10.1787/5k9csfs90fr4-en
Baker, H. K., & Ricciardi, V. (2014). How bias in decision making affects investors' financial decisions. Journal of Financial Planning, 27(6), 60-69.
Barba, A., & McKinley, T. (2021). Financial education and digital literacy: Leveraging technology for teaching financial concepts. International Journal of Financial Education, 23(2), 55-68.
Bhushan, R., & M. S. Soni. (2021). Financial literacy of Generation Z: An exploratory study. Journal of Financial Services Marketing, 26(2), 112-123. https://doi.org/10.1057/s41264-021-00099-w
Bhushan, R., & Ramesh, M. (2020). The role of financial literacy in promoting financial well-being among youth: A review of literature. Indian Journal of Economics and Business, 19(2), 91-106.
Cole, S., Sampson, T., & Zia, B. (2011). Financial literacy, financial decisions, and the demand for financial services: Evidence from India. Journal of Banking & Finance, 35(11), 2801-2822. https://doi.org/10.1016/j.jbankfin.2011.07.021
DeVaney, S. A. (2018). Financial literacy among Generation Z: Understanding financial behaviors. Journal of Family and Consumer Sciences, 110(2), 32-40.
Fox, J., & Noone, C. (2016). Financial literacy education: Current status and future directions. Journal of Consumer Affairs, 50(1), 1-17. https://doi.org/10.1111/joca.12070
Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861-1883. https://doi.org/10.1287/mnsc.2014.1899
Financial Industry Regulatory Authority (FINRA). (2016). National Financial Capability Study: Gen Z and Millennials. FINRA Investor Education Foundation.
Gist, D. A. (2020). The impact of financial socialization on the financial literacy of Gen Z. Journal of Financial Education, 46(3), 147-167.
Gutter, M. S., & Copur, Z. (2011). Financial behavior of college students: Examining the role of financial literacy, financial education, and financial stress. Journal of Family and Economic Issues, 32(4), 646-660. https://doi.org/10.1007/s10834-011-9254-6
Hira, T. K., & Loibl, C. (2018). Understanding financial literacy of college students: An exploratory analysis. Journal of Financial Education, 44(1), 11-23.
Klapper, L. F., Lusardi, A., & Van Oudheusden, P. (2015). Financial literacy around the world: Insights from the Standard & Poor's Ratings Services Global Financial Literacy Survey. World Bank Publications. https://doi.org/10.1596/978-1-4648-0467-3
Lown, J. M., & Chaffin, K. A. (2017). The effectiveness of financial education: A literature review and comparison of methodologies. Journal of Financial Counseling and Planning, 28(1), 68-84. https://doi.org/10.1891/1052-3073.28.1.68
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5
Marshall, B., & Bennett, A. (2019). The role of financial knowledge in influencing financial behavior among Generation Z. Journal of Economic and Financial Education, 14(3), 45-59.
Miller, C., & Klugman, B. (2021). Understanding financial well-being in young adults: A financial literacy perspective. Social Science Journal, 58(3), 217-234.
Molyneux, P., & Tett, G. (2020). Millennials and financial literacy: Bridging the knowledge gap. The Journal of Financial Planning, 33(4), 42-50.
Parker, P. M., & Kim, H. (2021). The role of peer influence on financial behavior: A study of Gen Z. Journal of Economic Psychology, 58(1), 50-66.
Robinson, T., & Buck, J. (2018). Financial literacy and behaviors of young adults in the United States. Journal of Personal Finance, 17(4), 23-36.
Shim, S., Barber, B. L., Card, N. A., & Xiao, J. J. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39(12), 1457-1470. https://doi.org/10.1007/s10964-009-9436-8
Tsai, T., & Huang, Y. (2019). The impact of social media on the financial behavior of young adults. Journal of Behavioral Finance, 20(3), 225-235.
Williams, T., & Harris, A. (2020). Social media as a source of financial education for young people. Journal of Financial Education, 22(4), 112-124.
Young, M., & Brodie, R. (2015). Digital financial literacy: A guide for the next generation. Journal of Digital Media and Policy, 6(3), 345-367. https://doi.org/10.1386/jdmp.6.3.345_1
Zick, K., & Glendinning, D. (2021). The intersection of social media and financial literacy among Generation Z. International Journal of Financial Literacy, 27(4), 89-98.
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Published
2025-08-01
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Financial Literacy Among Gen Z: Understanding The Gaps And Opportunities. (2025). Proceeding of International Conference on Economics, Technology, Management, Accounting, Education, and Social Science (ICETEA), 1, 1083-1099. https://conference.unita.ac.id/index.php/icetea/article/view/449
